PC Connection, Inc., a holder of companies that specialize in providing end-to-end information technology solutions to business, government, and education markets, acquired ValCom Technology for $11.6 million, subject to confirmation of stockholders' equity at closing.
Under the terms of the stock purchase agreement, PC Connection paid the shareholders of ValCom Technology $8.6 million at closing and will pay up to an additional $3 million upon the achievement of certain performance milestones over the next 18 months.
Headquartered in the Chicago area, ValCom provided technology services to medium-to-large corporate organizations for more than 28 years. With 200-plus employees, the company sells infrastructure management and onsite managed services using cloud-based IT service management software. ValCom also provides network, server, storage, and mission-critical onsite installation and support in a scalable services delivery model.
Patricia Gallup, chairman and CEO of PC Connection, said, "We are expanding our managed services offerings through this acquisition, and we look forward to leveraging the resources of this highly-skilled organization over our existing customer base."
ValCom Technology will operate as a wholly-owned subsidiary of PC Connection from its current facility located in Itasca, Illinois. The company will operate under the ValCom, ValCom Technology, and ValCom Technology Management Solutions tradenames. In the year ended December 31, 2010, it generated about $40 million in revenue, 50 percent of which was services, and operating income of approximately 7.5 percent of revenue. The acquisition of ValCom Technology is expected to be immediately accretive to PC Connection's earnings.
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